US trade deficit shrinks as goods imports hit five-year low

Reuters ^ | May 4, 2016

[reaganaut1]

The U.S. trade deficit fell more than expected in March as imports of goods tumbled to their lowest level since 2010, a potential boost to first-quarter economic growth estimates that also hints at sluggish domestic demand.

The Commerce Department said on Tuesday the trade gap fell 13.9 percent to $40.4 billion, the smallest since February 2015, also as exports fell.

February's trade deficit was revised slightly down to $46.96 billion from the previously reported $47.1 billion. Economists polled by Reuters had forecast the trade deficit falling to $41.5 billion in March. When adjusted for inflation, the deficit declined to $57.4 billion from $63.2 billion in February.

The government reported last month that trade subtracted 0.34 percentage point from first-quarter gross domestic product, helping to hold down growth to an annual rate of 0.5 percent. The smaller-than-forecast trade gap suggests that the advance GDP growth estimate could be bumped up when the government publishes its revised estimate later this month.

[reaganaut1]

The trade deficit is not a crisis that we need to fix with tariffs that will raise prices for consumers and cost jobs in export industries when other countries retaliate.

[cba123]

We are currently running the largest-ever trade deficit with the Peoples Republic of China.

Largest ever.

[DannyTN]

The trade deficit fell in Greece too. After Greece lost all it’s jobs and nobody could afford to buy the imports.

[DannyTN]

The trade deficit fell in Greece too. After Greece lost all it’s jobs and nobody could afford to buy the imports.

[Sacajaweau]

This is only a report for March. Big whoop....

[steve8714]

The US is still the only consumer market that can be stand-alone. Yeah we have to buy bananas overseas, and we don’t mine our own rare earth materials, but we don’t need to import steel, or cars, or food, and ship recyclables to those that make them for packaging.

[babble-on]

It’s oil prices.

[kabar]

The trade deficit is not a crisis that we need to fix with tariffs that will raise prices for consumers and cost jobs in export industries when other countries retaliate.<>?i>

We fix it by leveling the playing field. Unfair and unenforced trade agreements have resulted in manufacturing leaving this country and the loss of good paying jobs.

We run a trade deficit with almost every country on earth. We have the lowest labor participation rates in 38 years. We need to lower corporate tax rates, eliminate the forest of regulations, and make investment in this country more attractive. Tariffs are the last resort. We have tariffs now as do other countries.

[major-pelham]

This shrink is from no demand - precursor to shuddering ripple effect. Lefty chickens all coming home to roost - will be getting ugly.

[central_va]

Other countries can’t retaliate. They already have erected trade barriers you idiot.

[sparklite2]

Yeah, I can’t figure that out, either. How is a reduction in imports “a potential boost to first-quarter economic growth”? Bringing in less from abroad doesn’t mean we produced more at home.

[Buckeye McFrog]

I have only been in Walmart once since the start of the year. Guess it shows.